For the first time since January 2018, the 30-year fixed-rate mortgage rate plummeted below 4%.
The result of Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed that the 30-year FRM went down to an average of 3.99% for the week ending May 30. The week before that, the FRM averaged 4.06%, and 4.56% a year ago.
Meanwhile, the 15-year FRM averaged 3.46%, dropping from 3.51% from the previous week. A year ago at this time, the 15-year FRM was 4.06%.
Lastly, the 5-year Treasury-indexed hybrid adjustable-rate mortgage fell from 3.68% to 3.6% with an average 0.4 point. Last year, the 5-year ARM averaged 3.8%.
“While economic data points to continued strength, financial sentiment is weakening with the spread between the 10-year and the three-month Treasury bill narrowing as fears of the impact of the trade war with China grow,” said Freddie Mac Chief Economist Sam Khater. “Lower rates should, however, give a boost to the housing market, which has been on the upswing with both existing and new home sales picking up recently.”